South of Market Multi-Use
For Sale
$4,500,000
1118 Howard Street, San Francisco, CA 94103
Updated 3-level building near retail corridor and Highway 101.
Property Size13,500 SF
Price / SF$333.33
Days on Market447
Property Features for 1118 Howard Street
General Information
Standard status
Active
Size
13,500 SF
Building Details
Year Built
1926
Listing Agency:
NEW CALIFORNIA REALTY
(415) 378-6034
Listed By:
SOPHIA LAI-TRUJILLO
Source:
Corcoran
Added: Jun 4, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of NEW CALIFORNIA REALTY
Investment Insights
Based on property information with market context.
This updated three-level building is located in the South of Market area, near federal buildings, a retail corridor, and Highways 101 and 280, allowing for multiple uses. The ground floor features two wings. The left wing is currently rented as a 2,500-square-foot gym. The right wing, also 2,500 square feet, has been used as a grocery store and a sewing shop and is currently vacant. This wing includes two drive-in doors measuring 8 by 10 feet for truck delivery. The 4,000-square-foot second floor houses an office and sewing/clothing design shop. The updated 4,500-square-foot third-floor office space, previously occupied by a software developer, is now vacant and features high ceilings. Each floor has two bathrooms. Updates to the property, completed with permits, include a hydraulic freight elevator servicing all floors, ADA restrooms, fire sprinklers, an 800-amp 3-phase power supply, and seismic upgrades. The total property size is 13,500 square feet.
Key Highlights
- Prime South of Market location near Federal buildings, retail corridor, and Highway 101/280.
- Multiple uses allowed, offering versatile investment or business opportunities.
- Updated with permits: hydraulic freight elevator, ADA restrooms, fire sprinklers, 800 amps of 3‑phase power, and seismic upgrade.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$332,645
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.39%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$6,652,900
$6.7M
Cap Rate 7%
$4,752,071
$4.8M
Cap Rate 9%
$3,696,056
$3.7M
Market Conditions
NOI Build-Up for 13,500 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$594.5K $44.04/SF
− Vacancy
−$151.0K −$11.19/SF
EGI
$443.5K $32.85/SF
− OpEx
−$110.9K −$8.21/SF
NOI
$332.6K $24.64/SF
Area
San Francisco, CA
Vacancy
25.40%
Lease Rate
$44.04 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$6,652,900
Cap Rate 7%
$4,752,071
Cap Rate 9%
$3,696,056
Alternative Uses
Best Use
Retail
$61.55M
$53.85M – $71.80M
NOI $4,308,208 @ 7.0% cap · market cap 95.74%
Second Best
Office B
$4.75M
$4.16M – $5.54M
NOI $332,645 @ 7.0% cap · market cap 7.39%
Theoretical Best
Specialty Retail
$65.94M
$57.70M – $76.93M
NOI $4,615,937 @ 7.0% cap · market cap 102.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
13,414
Businesses Nearby
Explore this area
Business Placement
Demographics for 94103, CA
37,843
Population
20,920
Households
1.8
Avg Household Size
37
Median Age
56%
College-Educated
88%
High-School Grad
1.4 sq mi
ZIP Area
27,031
Density / Sq Mi
$122,339
Median Household Income
$83,348
Median Earnings
$2,146
Median Rent
$1,057,600
Median Home Value
Market
Vacancy Rate% for Office in San Francisco, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Updated 3-level building near retail corridor and Highway 101.
Where is this retail space located?
The property is located at 1118 Howard Street San Francisco, CA.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Prime South of Market location near Federal buildings, retail corridor, and Highway 101/280.; Multiple uses allowed, offering versatile investment or business opportunities.; Updated with permits: hydraulic freight elevator, ADA restrooms, fire sprinklers, 800 amps of 3‑phase power, and seismic upgrade.
